State Education Assistance Authority State Update Elizabeth McDuffie State Education Assistance Authority November 8, 2017

Today’s Topics State of Aid in NC Legislation Update Outreach Proposed federal tax changes State Grants for 2018-19 New State Loan Program Red because I need to edit once done.

NC State Grants – Undergraduates 2000-01 to 2017-18 (est)

Average Debt at Graduation Source: Project on Student Debt

Forgivable Education Loans Forgivable Education Loans for Service (FELS) Disbursed ~ $24 million in 15-16 Disbursed ~ $21.5 million in 16-17 Anticipate ~ $19 million in 17-18 Eligible fields of study—fields experiencing critical shortages of workers Allied Health Medicine/Dentistry Nursing Teaching in shortage fields

NC FAFSA Trend As of 11/23/xx

2017 State Legislation

Legislation Tuition Grants for NCSSM Graduates Must enroll at a UNC institution as a full-time student for the 2018-19 academic year Tuition only (not fees) Grant must be reduced if total aid exceeds COA Currently, grant authorized for the 2018-19 year only SEAA will work with NCSSM to capture the students who intend to enroll at a UNC SEAA will rely on UNC campuses to provide information about tuition costs for each student $1.5m appropriated—360 possible graduates…

NC Teaching Fellows Redux Recruit, prepare and support students for preparation as highly effective teachers Administered jointly by Teaching Fellows Commission and the State Education Assistance Authority Director of Program-- Sara Ulm, UNC General Administration Program revived with: Broader student eligibility 1) Incoming freshmen, 2) cc transfer students, 3) college students with credits who decide to enter education field, & 4) individuals seeking licensure only

NC Teaching Fellows (cont) Fewer recipients – Anticipate ~200 to be selected Limited to five participating colleges/universities to be identified by 11/ 15 by the Teaching Fellows Commission Narrower licensure fields—Only STEM and Special Education DPI must submit list of licensure shortage areas Increased award value of up to $8,250/year for tuition/fees, books Freshmen funded for up to 4 years Transfer students funded for up to 3 years Remaining students funded for up to 2 years

NC Teaching Fellows (cont) Different service requirement from original program One year of service in a low-performing school for each year of funding OR Two years of service for each year of funding in other public schools Applications available --December 1, 2017 Recipients to be notified by April 1, 2018

Outreach SEAA School counselor advisory group Ceasing the summer counselor internship program in college financial aid offices Replace internship program with intensive training for counselors about financial aid Finish the FAFSA and other FAFSA completion activities

FINISH the FAFSA! SEAA led initiative providing information to high school counselors about the FAFSA status of their seniors Using tools available on CFNC.org, counselors can see which of their high school seniors have completed the FAFSA and prod non-completers 2017-18 results: Participating high schools had 64% of their students complete the FAFSA compared to 57% at non-participating high schools Over 300 high schools participating for the 2018-19 cycle

CFNC.org/fafsaday Information to enable students to contact aid offices for assistance

Federal Tax Proposals

H. R. 1—Tax Cut and Jobs Act Education Impact Tax credit for qualified expenses Repeal the Hope Tax Credit and Lifetime Learning tax Credit Expand American Opportunity Tax Credit Currently limited to $2,500 year for first 4 years Calculated at 100% of first $2,000 and 25% of next $2,000 of qualified expenses Add 5th year at one-half value--$1,250

Proposed Tax changes (cont) No new contributions to Coverdell Education Savings Accounts Currently earnings are tax-exempt and can be used for education expenses in K-12 as well as higher education Proposal: Option to roll accounts to 529 programs AND Modify 529 programs to allow up to $10,000/annually to spend on private K12

Proposed Tax changes (cont) Repeal: Student loan interest payment deduction Tuition and Related expense deduction ($4,000 maximum) Interest on savings bonds when used for higher education expenses Tuition reductions provided by institution to employees, spouses, dependents Employer-provided education assistance $5,250/year

Grants Update and Timeline

Pell Grant Possibilities If Congress level-funds the program: 2018-19 Pell Schedules = 2017-18 Pell Schedules If Congress provides an increase in funding, the 2018-19 Pell Schedules would reflect that increase Senate proposed $100 increase to the maximum Pell Grant award The House version did not include increase Source: NASFAA Today’s News, Oct 23, 2017

Grants for 2018-19 State grants are linked to Pell Payment Schedule Continuing Resolution for budget passed in September –pushed budget deadline to December In December, pass budget or delay to 2018 Master ED calendar requires publishing Pell Payment Schedules by February 1

State Grant Schedule December 1: Deadline for certifying state grants for the fall semester Anticipate mid-January release of 2018-19 payment schedules If you choose to estimate grants, may use 2017-18 schedules as a guide Remember that if the Pell Grant increase occurs ~ $100, the state grant may be reduced by $100.

New Loan Program for Students and Parents

Student Assist Loan Parent Assist Loan Fixed rate loans for students and parents with North Carolina nexus NC resident enrolling in out-of-state college Out-of-state resident enrolling in a NC institution Credit-based loan– If student does not have credit or credit score is too low, will need a co-signer with eligible credit score Loan will provide an option to PLUS loan for parents and graduate students Administered by College Foundation, Inc.

NCSEAA and CFI Unique relationship existing for decades CFI was established before NCSEAA College Foundation, Inc is a 509(a)(3) nonprofit organization – designated as a supporting organization within IRS code. The “supporting organization” designation recognizes that CFI’s operations lessen the burdens of government by administering centralized grant programs, loans, and related specialized services for the State’s financial aid programs and the State’s 529 plan.

Questions?